Gen Y and Z affluent consumers are more values-driven than the previous generations
The vast majority – 91 percent – of affluent U.S. consumers donate to charity, but giving motivations, priorities and strategies vary by generation and gender.
Direct giving with a financial contribution is the most common form of philanthropic involvement, per a new report from Bank of America Private Bank. However, younger donors – ages 21-43 – prioritize direct action, such as volunteering, fundraising, mentorship and sitting on boards.
“Our 2024 study reveals a common thread among high-net-worth individuals: a strong desire to make a positive change with lasting impact,” said Jennifer Chandler, head of philanthropic solutions at Bank of America Private Bank, in a statement.
“However, responses also make it clear that there’s more than one way to achieve that goal,” she said.
Bank of America is one of the leading financial institutions worldwide.
Differences in age
Philanthropy is a way to impact the future, but what that impact looks like varies by age, per the BofA report.
- When asked about their reasons for giving, all generations are motivated by making a lasting impact (69 percent older vs. 63 percent younger). However, older respondents are more than twice as likely to be driven by a sense of obligation (56 percent older vs. 25 percent younger).
- Younger donors give to causes related to homelessness (41 percent younger vs. 21 percent older), human rights/social justice (33 percent vs. 18 percent), climate change/environment (32 percent vs. 17 percent) and the advancement of women and girls (21 percent vs. 15 percent).
- Older donors tend to prioritize giving to religious organizations (41 percent older vs. 18 percent younger), animal welfare (32 percent vs. 25 percent), military (24 percent vs. 15 percent) and cultural/artistic conservation and creation (22 percent vs. 12 percent).
- As many are inheritors of wealth, younger donors surveyed are more likely to use giving vehicles, including charitable trusts (36 percent younger vs. 7 percent older), family foundations (25 percent vs. 3 percent) and donor advised funds (22 percent vs. 8 percent).
- Younger donors are more likely than older donors to gauge the success of their philanthropic efforts by public recognition (27 percent younger vs. 8 percent older). Additionally, 42 percent of younger donors say they are likely to associate their names with philanthropic efforts, while 69 percent of older donors give anonymously.
Gender divide
Just as age factors into one’s philanthropic preferences and involvement, so too does gender, according to the BofA report.
- Men are twice as likely to become involved in philanthropy because of their spouse/partner’s ideas (16 percent men vs. 8 percent women).
- Men are slightly more likely to give to causes related to hunger and poverty (45 percent men vs. 40 percent women). Women are significantly more likely than men (23 percent women vs. 12 percent men) to direct their support toward causes supporting the advancement of women and girls.
- Women shoulder the responsibility of introducing their children to philanthropy. When asked who is more likely to teach or talk to their children about participating in philanthropy, 46 percent of women point to themselves, while only 35 percent of men say the same.
Passing the baton
Intergenerational skepticism surrounds philanthropic effectiveness, per BofA.
- The vast majority of younger donors (88 percent) feel their generation is prepared to assume philanthropic leadership, and 86 percent believe the next generation will surpass the effectiveness of previous generations.
- However, only 50 percent of the older generation think the next generation is prepared to take on and support philanthropic causes.
- Many younger donors say they take a different approach to philanthropy (80 percent) than the previous generation but share their parents’ commitment to giving back (88 percent).
- Older donors’ responses show the inverse: They perceive their children to share their philanthropic approach (67 percent) but demonstrate lower levels of commitment (73 percent).
“Generational and gender experiences shape worldviews and values, influencing cause selection and how people give,” Ms. Chandler said in the statement.
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